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A decision-maker chooses the variable x to maximize her net benefit, e.g., her profits. If the marginal benefit of x is less than the marginal
A decision-maker chooses the variable x to maximize her net benefit, e.g., her profits. If the marginal benefit of x is less than the marginal cost of x at the current value of x, what should the decision-maker do?
Decrease x.
Increase x.
choose x where the benefit is highest.
choose x where the cost is smallest.
Give reason
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